What are green bonds and their standards?

What are green bonds and how do they work?

Green bonds are fixed-income instruments designed to raise funds for projects with positive environmental impacts. They work like traditional bonds but are specifically earmarked for financing green projects.

What standards are used to define green bonds?

Green bonds are often defined by standards such as the Green Bond Principles (GBP) and the Climate Bonds Standard, which provide guidelines for transparency and reporting.

How can I invest in green bonds?

You can invest in green bonds through various channels, including mutual funds, ETFs, or directly purchasing bonds from issuers that meet green standards.

Are green bonds a good investment?

Green bonds can be a good investment if you're looking for socially responsible options. They often provide competitive returns while supporting environmental initiatives.